Since January, UC has bargained in good faith with the University
Professional and Technical Employees (UPTE) for a fair contract for
research and technical employees and is disappointed no agreement has
been reached so far.

At the most recent Oct. 9, 2013 bargaining session, UC and the union
discussed 2014 rates for medical benefits as well as some non-economic
issues.

However, the primary hurdle in these negotiations remains the total
compensation package including pension reform. UC believes its proposals
are fair, reasonable and financially sustainable; UPTE has rejected
these.

UC has offered 6 percent in step increases to eligible employees over
three years. UPTE is seeking wage increases of at least 22 percent over
four years, with additional step increases for eligible employees.

On the core issue of pension reform, UPTE has proposed placing all
existing and new employees in the older 1976 pension tier, instead of
putting employees hired on or after July 1, 2013 in a slightly modified
tier.

In exchange for having all members in the 1976 tier, UPTE proposes
that all UPTE members would pay a higher contribution rate than all
other UC employees. Under the union's proposal:

In 2013, all UPTE members would contribute 7.5 percent — more
than the 6.5 percent that other represented and non-represented UC
employees currently contribute for the same retirement benefits.

In 2014, all UPTE members would contribute 9 percent — more than
the 8 percent that other represented and non-represented UC employees
will contribute.

UC has rejected this proposal. The 1976 pension tier is more
expensive than the 2013 tier and the central goal of UC's pension
reforms is to continue providing quality, financially sustainable
retirement benefits for employees over the long term. The Board of
Regents created the new 2013 tier as part of a strategic decision to
reduce the pension plan’s unfunded liability and preserve its long-term
viability.

The university's reasonable and carefully crafted approach to pension
reform is similar to what the legislature implemented for state
employees. UC's approach includes:

Increased contributions toward the cost of pension benefits from
both UC and employees. UC would contribute 12 percent and employees 6.5
percent, up from 10 percent and 5 percent respectively.

A new category ("tier") of pension benefits for employees hired on or after July 1, 2013

Revised eligibility rules for retiree health benefits

UC remains committed to reaching a fair agreement for research and technical employees, and to resolving differences with UPTE.